Return on total assets
Return on total assets (also known by its acronym, ROA) is the ratio of net income to total assets.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Return on total assets (ROA). The ratio of net income to total assets.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Return on total assets (ROA). The ratio of net income to total assets; it measures the rate of return on the firm's assets.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
